Hi Guys. I got some good news for you all. You can now boot any version of ubuntu without relying on kernel version specific vloop module. You can follow my project here,vdfuse.sourceforge.net/
This makes use of the fuse module to boot linux installed in VHD.

Yes. Indeed I did most of my testing in 14.04. It should definitely work for any version of Ubuntu. Please let me know what issue you are facing in my project page so that everybody can benefit from it. Post your comments in the discussion board here,sourceforge.net/p/vdfuse/discussion/general/thread/e810bc6c/